The evolution of funding structures in Brazil: Crowdfunding, Convertible Loan Agreements and Convertible Debentures

In light of evolution of business relations and the “importation” of the American convertible note as a funding mechanism, mainly by early stage tech-companies (statups), new legal structures arose in Brazil and other types of unpopular structures started being used more often, such as the Convertible Loan Agreements and Convertible Debentures. We also noted the popularization of the so-called Equity Crowdfunding by way of a funding platform, which has been structured by the aforementioned legal alternatives.

However, due to the particularities of the Brazilian legal system, it is worth clarifying a few aspects of the Equity Crowdfunding platform, the Convertible Loans and the Convertible Debentures.